There can be no dispute that in order to succeed in its claim to damages the plaintiff must establish that the cancellation of the agreement before the expiry of the period fixed was wrongful. Clause 13 of the agreement undoubtedly empowered the defendant to terminate the agency in case of appreciable shortfall in the guaranteed annual sale of products worth Rs. 5 lakhs in terms of Clause 12 The last mentioned term would not apply inter alia if T.P.I. failed to maintain the quality of its products leading to the buyers such as K.D.H.P. refusing to place orders with T.P I.
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Supreme Court of India
The Firm Styled G.L. Kilikar vs The State Of Kerala on 26 April, 1971
Equivalent citations: AIR 1971 SC 1196, (1971) 3 SCC 751, 1971 III UJ 704 SC
Bench: G Mitter, K Hegde, P J Reddy
